No one wants to think negatively when planning a move. However, you should know that sometimes things can go wrong. No matter if you are moving long distances or just locally, the right moving insurance will protect your belongings and give you one less thing to worry about. Accidents can happen even when you are moving with a professional. For this reason, Number 1 Movers have prepared a small guide on moving insurance, and everything you should know about it.
What is moving insurance?
Moving insurance covers the damage of your items during a move. How much you are going to be covered will depend on your policy. Moreover, moving insurance also depends on the moving distance and the value of your items. This is why it is crucial to check cost breakdowns and reimbursement details with your insurance provider before you move.
Different moving insurance options
Professional moving companies have two different types of coverage:
- Full protection
- Released value protection
The amount that you are going to be reimbursed in case of damage is affected by the type of coverage you choose.
Moving companies are not allowed to sell insurance; however, they are required by law to provide valuation options. So what exactly are valuation options? Valuation is the amount of liability your moving company will take if your belongings get damaged during transit. It’s important to know that valuation is way more limited compared to insurance and it usually refers only to how much a moving company will reimburse you on an item. This means that you might not be fully reimbursed. Different moving companies provide different types of valuation. The best option that will cover all of your items is getting insurance from third-party insurance providers.
Full Value Protection
Full value protection ensures the total replacement cost of the damaged or lost item. If one of these two things occurs, your moving company has three options to fix the problem:
- Repair the item
- Replace the item
- Give you money for the cost of the repair or current replacement value
This excludes items of extraordinary value (over $100 per pound). These items will not be covered with this type of insurance.
What you need to know is that full value insurance is expensive. The price will depend on the moving company. This is why it is important to compare them. However, full value protection will cost you around 1% of the total estimated value of your belongings. So after you get a free moving quote you will be able to approximately calculate the cost of the full coverage. Of course, verify the price with the moving company before you hire one.
Released Value Protection
This option is free of charge. It’s default coverage in case you don’t choose the full value option. This is good for those who don’t have a big moving budget. With this kind of protection, a company is only responsible for $0.60 per pound per item. If you are planning to move items that cost a lot, you should consider getting the full value coverage. Moreover, in case you choose released value protection, your moving company will ask you to sign a waiver on your Bill of Lading before your relocation begins.
A third party coverage
If you are not satisfied with the coverage that your moving company offers, you can always get third-party coverage. If you call your home insurance, they might be able to add it to your existing policy for free. On the other side, if your provider doesn’t offer this, there are many other companies that provide third-party coverage. Third-party coverage is a must when moving goods of high value, like art and family heirlooms. The cost of this insurance usually ranges from 1% to 5% of the shipment’s total value.
What about a DIY move?
For DIY moves you can buy transit or moving insurance from your house insurance provider if they offer one. Also, you can get transit insurance from a rental truck company if you are renting one. However, this kind of insurance may not cover:
- Damage due to insufficient packing
- Moving of belongings in the truck during transit
- Theft or vandalism
Check Your Agreement
Make sure to review your contract and your mover’s capabilities to determine what kind of coverage they provide for property loss and damage. Moreover, verify the estimated value of your belongings and match it to your own inventory list. Even if your moving company does the inventory, you should do the one too. If the two don’t match have a talk with a representative and see who made a mistake. This is one of the things why doing inventory is important when moving. Another thing you should verify is the coverage of the property damage. A professional moving company will cover the damage to your property if they make any. And lastly, check the time limit for filing claims. The unpacking process takes a lot of time if you do it on your own, so make sure they offer a reasonable time limit to file a claim.
Is getting moving insurance worth the cost?
The answer to this question is yes. Many unpredictable things can happen during a move, so it’s better to be prepared. Even if you are moving locally it’s better to protect your goods. It’s better to be safe than sorry. Having moving insurance will definitely give you peace of mind. However, you must keep in mind that you should keep all the paperwork; both from the moving company and the third party insurance, provider. It’s important to have all the necessary documentation in case something goes missing or gets broken so that you can start the claim process.